This paper discusses various market design options for procuring, pricing and settling Ancillary Services via competitive auctions by an Independent System Operator (ISO). The paper also discusses problems and potential solutions associated with these market design options based on actual experience of operating ISOs. These problems include price volatility and spikes and price reversals for th...

Plug-in hybrid electric vehicles (PHEVs) can become valuable resources for an electric power system by providing vehicle to grid (V2G) services, such as energy storage and ancillary services. We use a unit commitment model of the Texas power system to simulate system operations with different-sized PHEV fleets that do and do not provide V2G services, to estimate the value of those services. We ...

The integration of renewable wind and pumped storage with thermal power generation allows for dispatch of wind energy by generation companies (GENCOs) interested in participation in energy and ancillary services markets. However, to realize the maximum economic profit, optimal coordination and accounting for reduction in cost for environmental emission is necessary. The goal of this study is to...

The rising cost of health care affects our economy and can impact the health of our citizens. Costs can be divided into direct costs, which are incurred in the provision of services and procedures, and ancillary costs, such as labs and imaging. While ancillary services greatly assist providers in diagnosing and treating medical conditions, they can be overused or inappropriately used and can le...

Motivated by airline baggage fees, we consider a service provider offering a main service (e.g., transporting a person) and an ancillary service (e.g., transporting a checked bag) that an individual customer may or may not need. We ask whether the firm should bundle the two services and post a single price or unbundle them and price the ancillary service separately. We consider two motivations ...

Researchers have proposed that fleets of plug-in hybrid vehicles could be used to perform ancillary services for the electric grid. Inmany of these studies, the vehicles are able to accrue revenue for performing these grid stabilization services, which would offset the increased purchase cost of plug-in hybrid vehicles. To date, all such studies have assumed a vehicle command architecture that ...